Caroline Ellison, the ex-CEO of Alameda Research, took the stand because the fifth witness for the prosecution in Sam Bankman-Fried’s six-week trial, claiming that the previous FTX CEO directed her to commit fraud and cash laundering crimes.
Ellison added that whereas she ran Alameda, she took a number of billion {dollars} from clients to spend money on different initiatives and repay money owed to lenders via an “essentially unlimited line of credit.”
Alameda took $14 billion in complete from clients, however “some we were able to pay back,” Ellison testified. She additionally stated she despatched modified stability sheets to traders and lenders on the course of Bankman-Fried so Alameda Research might “look less risky than it was.”
Ellison has pleaded responsible to a number of fees and accepted plea agreements, alongside Gary Wang, co-founder and CTO of FTX, and Nishad Singh, director of engineering at FTX. Wang testified within the trial from October 5 till noon on Tuesday.
Ellison and Bankman-Fried dated for various years on and off, she stated, including that they initially met whereas she was an intern at quantitative buying and selling agency Jane Street.
Bankman-Fried is on trial for alleged fraud, amongst different fees.
This story is creating. Updates to comply with.